By Christopher Alessi
Siemens AG has no plans to walk away from a planned deal to
acquire U.S. oil equipment manufacturer Dresser Rand Inc. despite
the slide in oil prices, Chief Executive Joe Kaeser said on
Tuesday.
In addition, the acquisition of the Houston-based company in a
cash deal valued at $7.6 billion, including debt, should deliver
bigger-than-expected cost savings and revenue gains for the German
engineering group, Mr. Kaeser said.
"If we walked away from that deal, you would see a lot of happy
competitors," Mr. Kaeser said at event for financial analysts in
Berlin.
Falling oil prices reflect supply rather than demand "which is
an encouraging sign this is all temporary," he said.
U.S. oil prices ended 4.2% lower on Monday at $63.05 a barrel,
the lowest level since July 16, 2009.
Dresser Rand's installed customer base would allow it to achieve
synergies 30% higher than initially announced, Mr. Kaeser said.
In September, Siemens said it expected to achieve EUR150 million
($185 million) in annual synergies by 2019 as a result of the deal.
Dresser-Rand manufacturers compressors, gas turbines and
engines.
The acquisition is part of Mr. Kaeser's broader strategy to
expand U.S. operations and capitalize on America's growing energy
sector, which is riding the shale-gas boom.
Write to Christopher Alessi at christopher.alessi@wsj.com
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